HSBC’s Q1 revenue climbs, but pre-tax profit misses estimates on higher credit losses
HSBC reported a first-quarter pre-tax profit of about $9.4 billion, below consensus estimates (~$9.59B), even as revenue rose 6% to $18.62 billion on stronger wealth and fee income. The bank flagged higher expected credit losses of $1.3 billion (up $400 million year-over-year) tied to UK sponsor exposure and a weaker macro outlook amid the Middle East conflict. Net interest income rose 8% to $8.9 billion, with costs up 8% as inflation and scheduling pressures weighed. Annualised RoTE stood at 17.3%, but management warned that adverse Middle East developments could push RoTE below 17% in 2026. The board approved a 10-cent interim dividend for 2026 and HSBC reiterated its plan to cut costs by $1.5 billion annually by 2026, alongside about $0.5 billion in Hang Seng Bank-related pre-tax revenue and cost synergies by end-2028 after Hang Seng’s privatization completed. Hong Kong shares fell roughly 3.7% following the results.
